Tampa Short Sales Information

What is a short sale?

A short sale is when a home owner nets less on the sale of the home than is owed to the lender. For instance: A home owner has to sell his home and has a $250,000 loan balance outstanding. The market conditions suggest that the home may only be worth $240,000. At a sale price of $240,000, and adding the costs of selling the home, the owner will have a deficit of about $28,000. The lender agrees to the sale and forgives the seller the $28,000 owed.

Why would a lender (note holder) allow this?

Banks would rather write off a portion of the amount owed than be faced with the possibilty of taking ownership of the property. Estimates are upwards of $50,000 just for the bank to initiate foreclosure proceedings. The bank will often try to minimize its losses by allowing the owner to sell the home and payoff less than what is owed.

Who qualifies for a short sale?

Homeowners that are behind in payments, or homeowners who will soon be unable to make payments, may qualify to short sell their home. A hardship letter explaining the homeowners' situation will be required by the bank, along with proof of current income (pay stubs), recent tax returns, and a financial worksheet detailing income, assets, and liabilities.

What will the bank accept as a payoff?

The bank will have to approve any offer (contract) that the homeowner has signed with a prospective buyer. The bank will consider the offer weighed against what they could possibly net at a public auction instead. Banks are often slow to approve or respond to delivered offers (contracts).

Why are short sales becoming so common?

When home values decline, as they recently have in Tampa, loan balances on many homes exceed the market value. For instance, anyone who bought a home in Tampa at the peak of the market in late 2005, and put less than 10% down, most likely owes more than the home is worth. Likewise, those who continued to borrow against the accumulated equity in their homes, may now owe more than the home is worth.

Will we see more short sales?

More than likely is the answer. As long as there are plenty of mortgages out there with balances at or above the market value of the property, expect more short sales. As those mortgages are weeded out and/or property values begin to rise, expect short sales to go away. It's all about equity, or lack thereof.

Home Sellers

Need to sell and wondering if you would qualify to short sell your property? Feel free to contact us using the form below. Someone will be in touch with you within 24 hours.

Home Buyers

Are you in the market  for a home in Tampa? Do you want to explore the possibilities of purchasing a short sale home? If so, fill out the form below. We will contact you within 24 hours to discuss your plans and how we can assist you.

Please fill out the form below and we will respond to your question as quickly as possible. 

Got a Question?

Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.
 
Your Information
*Name:
*Email:
Phone:

Your Question
Question:

Note: Fields with an * are required

STAY UPDATED!
Enter your email address to receive  Tampa market reports,  and more from our web log:

Delivered by FeedBurner


Gurvich Group of Keller Williams 3502 Henderson Blvd Tampa, FL 33609
Cell: Fax:

Tampa Home Inspections | Contact Us | Curb/Web Appeal List | Free Report for Sellers | What's My Home Worth? | Search All Areas | Why Use a Buyer Agent? | Tampa Bay Map | About Keller Williams | About Gurvich Group | Links | News & Info | Tampa FSBO's | Tampa Real Estate Blog | REALTOR Info | Tampa Condos | Home Staging | Client Testimonials | Buyer Questionnaire | Seminole Heights Homes | Community Reports | Pricing Your Home | Palma Ceia Homes | Virginia Park Homes | Tampa Waterfront Homes | Why Pre-Inspect? | South Tampa Homes | Community Links | Bel Mar Shores Homes | Market Conditions | Listing Presentation | Market Snapshot | About The HUD 1 | Tampa Short Sales | Palma Ceia Bungalow For Sale | Sunset Park Home For Sale | Sunset Park Homes | Sunset Park Pool Home | Search MLS Tampa | Top Schools | Closing Costs | First Time Buyer? | Inspection Tips | Looking to Buy? | Real Estate Glossary | Looking to Sell? | GGKW Featured Homes | Home | Seller Paid Closing | Mortgage Calculators | Request Information | Make It Easy! | Home Value Estimate | Tampa Buyers | Tampa Sellers

Copyright © 2008 Gurvich Group of Keller Williams
Portions Copyright © 2008 a la mode, inc.
Another XSite by a la mode, inc. | Terms of UseSite Map
All rate, payment, and area information are estimates and approximations only.